divided as the balance of power holds firm on capitol hill, a call for unity. >> we remain more than a collection of red states and blue states. we are and forever will be the united states of america. >> this morning we have every issue covered. can the white house and congress work together to fix the economy? will the partisan gap now close? with the empire state building bathed in blue light, this much is clear. >> let the world know that 11:18 pm on the east coast of the united states, we projected this win, the re-election of barack obama for another four years. we want to welcome our viewers here in the united states and around the world. i'm kate boulduin.

barack obama rolls to victory, burying mitt romney in a windfall of electoral votes. barack obama says the next four years is about rallying together. listen here. >> our economy is recovering. a decade of war is ending. a long campaign is now over. and whether i earned your vote or not, i have listened to you. i have learned from you. and you have made me a better president. with your stories and your struggles, i return to the white house more determined and more inspired than ever about the work there is to do and the future that lies ahead. >> more determined and more inspired, but some are calling it a status quo election. the same president will face the

same balance of power on capitol hill. democrats keep control of the senate. republicans hold majority in the house. for much more on how it all went down, i'll go to john berman who is pulling double, triple, quadruple duty today? >> i lost count. a president with 303 electoral votes if his pocket, a chance for more with florida's count still out. i'm joined by dan lothian, in chicago this morning. it's a pretty narrow margin when we're talking about the popular vote, dan. how might this affect how he governs? >> reporter: talking to one democrat who told me that the president has to work harder at being more inclusive, bringing people together. we heard the president also reflect on during his victory speech. the president has to reach out not only to democrats but also

to republicans. there are big challenges as the president looks to shift the way he governs because the balance in power has not changed at all. there are some looming issues that the president has to address very quickly, like the fiscal cliff. one thing that's different, though, in the next four years as opposed to the last four is that the president doesn't have another election to worry about. he doesn't have to be watching the polls. that gives the president a little more flexibility. as we have been hearing, there are some republicans who are already talking about not being flexible. so we do expect that there will be some big challenges ahead as the president tackles things like immigration and tries to deal with the fiscal cliff, john. >> dan lothian, thanks so much. one of the things the president said in his speech is that he looks forward to sitting down with mitt romney and talk about the future. as for mitt romney, he was so confident yesterday he told reporters at one point that he only had a victory speech prepared. he was reluctant to concede.

when he did finally speak it was after 1:00 am in the morning and it was a very gracious mitt romney in boston. let's listen. >> the nation, as you know, is at a critical point. at a time like this, we can't risk partisan bickering and political posturing. our leaders have to reach across the aisle to do the people's work and as citizens we have to rise to the occasion. teachers and professors, we look to you not jucht to teach but for a passion to inspire. pastors and priests to testify to the enduring principles upon which our society is built. honesty, charity, integrity and family. we look to our parents, from the final analysis everything depends on the success of our homes. we looked at job creators of all kinds. we're counting on you to invest, to hire, to step forward. >> and romney's family, his wife

and sons joined him on stage along with the ryan family for a last campaign good by. defeat is one of the most complicated emotions in politics. emergencies i thought, handled it very well. >> very difficult speech to deliver for anyone. thank you, john. now that the president will stay in the white house the next four years, what will he be able to accomplish? status quo on capitol hill remains. will this hurt or help the country? the panel is here to help me answer all these questions. hilary, first to you. president obama, it's the first day of his second term. when can he accomplish to be successful in a second term in your view? >> there are big issues, obviously, on the agenda. first up is the budget. we've got climate change issues that we incurred after hurricane sandy. we have immigration, which is still at a stalemate and education reform. those are big, important issues that historically have received

some bipartisan support. i do think that the president is going to have to live the words he spoke last night, which was that we are going to have to listen to all of the people and bring people together. that's probably going to start with him. he's going to have to make more of a personal effort in engaging members of congress, engaging republicans than some people think that he has. i'm hopeful about that. >> erica, that's something you and hilary would agree. >> i absolutely think so. let's not forget. let's go back to 1996. a lot of these same conversations were happening in '96 and then they were suddenly able to balance the budget. will they this time? i think it will be guys on the right, sitting on the sidelines a lot. john binner and mitch mcconnell will try to cut some deals headed into the next four years. whether or not they can, though -- look what happened with senate republicans. they had a very, very bad night. senate republicans. it wasn't just the two major conservatives who got smacked.

a lot of the recycled republicans who were felt to be safe picks. >> john, i mean, the romney campaign clearly dealing with an election hangover today. where do they go from here? >> that billion dollar start-up is done. stick a fork in it, shut it down. pull the phones out of the walls. what the republican party will do after this loss. what's their takeaway? john boehner having a press conference to talk about the fiscal cliff. the president needs to lead. sequestration, modeled off bowles simpson or the gang of six. there is broad agreement. whether the republican leadership will continue to embrace intransigents or whether they feel that it will require them to reach out. >> we'll hear from john boehner,

what he has to say about it. put the marker out there and get moving. the president will have to signal very, very quickly where he is on this. it's one of those things that not everybody is going to get what they want. everyone has to give up something or everyone is going to give up everything. that sounded complicated but that's exactly what it is. this is an all or nothing deal. congress got us here. some blame the leadership of the president. they all have to fix it. i know that they haven't been talking really even about talking yet on the senate side. do you think, john, they're -- behind the scenes there's deal making going on that we don't know about or is it just silent? >> there was talk about kicking the can. now we know the results of the election, i think this outcome is the best for coming up with a deal. there's no reason to kick the can. >> stand back. lots more to go. what does president obama's victory mean going forward? we're starting that conversation now and we'll talk about that with virginia's republican

governor bob mcdonnell, stand ing by live, next. [ woman ] it's 32 minutes to go time, and the candidate's speech is in pieces all over the district. the writer's desktop and the coordinator's phone are working on a joke with local color. the secure cloud just received a revised intro from the strategist's tablet. and while i make my way into the venue, the candidate will be rehearsing off of his phone. [ candidate ] and thanks to every young face i see out there. [ woman ] his phone is one of his biggest supporters. [ female announcer ] with cisco at the center... working together has never worked so well. consider the silverado 1500 --

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♪ you're looking at the obama victory celebration last night. his big win in the battleground state of virginia, winning 51% of the vote there. he took the urban areas and suburbs west of richmond. the suburban areas right around new york city. fairfax county over there. it wasn't just the president who picked up a win in virginia. former governor tim kaine won the battle of the governors,

beating another former governor and former senator george allen. this, with the help of outside spending was the most expensive race in the nation. kate bolduan was up all night. >> late night but exciting night for all of us, john. bob mcdonnell has been a very strong surrogate for mitt romney during his presidential campaign. thank you so much for getting up and joining us this morning. >> sure. thanks, kate. >> no problem. over the weekend you predicted a razor thin win for mitt romney. have you spoken to governor romney after his loss last night? >> well, i was obviously wrong. no, i have not spoken to governor romney. i have spoken to senator allen. it was a tough night. mitt romney and paul ryan were very good men, would have been good leaders. but the president, in a poor economy, did a very good job

arty particula articulating his message. they had a good ground game, beat us on the ground. half the margin of 2008 but they did a good job. >> let's talk specifically about your state, virgina. key swing state. you were on cnn "starting point" the morning of the election, just yesterday morning. you were asked by soledad what signs you would be looking for of a romney win in virginia. >> i would look for the beltway counties around washed, loudon, fairfax, prince william. if governor romney were to win fairfax, prince william county and hold his own and stay close in fairfax, to me that would be a great signal that he's going to win the state. >> as i mentioned, i was reporting in those counties last night, prince william county which went for obama essentially the same percentage it did in 2008, winning all those counties you mentioned. what would you say are the big lessons you learned from your state about this loss for romney

last night? >> there was a piece of good news. we won eight out of the 11 congressional races, kate, in virginia. at the more local level, republicans did very well. we've got more work to do in the northern virginia beltway. i was fortunate to do well there in 2009. those are the greatest number of independent voters who will vote the issue and vote the person as opposed to the party. and we're losing the exchange up there, as you see in fairfax, prince william and loudon. we've got to do a better job and explaining to people why the conservative view is better for america and their pocketbook. we apparently didn't do it well enough. we'll get better. >> many lessons learned from last night, obviously. i want to bring in one of our countries with a question. john? >> you're a broadly popular governor of a swing state, also associated with the social conservative wing of your party. here is my question. what lessons should the republican party take from the

loss of people like aiken and mourdoch, huge tickets voteing against them. is it a problem of politics or is it a problem of policy? >> i don't think there's any surprise that the republican party is pro-life. i'm pro-life. the democratic party is pro-choice. a couple of candidates that lost made mistakes in how they communicated their pro-life position. you can't do that. it's more of a -- i don't think people will hold deeply held beliefs against you as long as you're right on the issues. the big issues they care about, jobs, economy, energy, spending, debt. we made some mistakes. we're at 30 governors now, 60% of america's governors probably pick up one or two more in

montana and washington state. we have to do better at the national level, the presidential races. >> thank you very much for your time this morning. we're about ten minutes from the opening bell on wall street. christine romans is standing by for that for sure. it could turn into a very big day for anyone invested in the markets. how they're reacting the day after the presidential election. >> whether i earned your vote or not, i have listened to you. i have learned from you. and you've made me a better president. with your stories and your struggles, i return to the white house more determined and more inspired than ever. [ ross ] we are in the dades gorge,

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it is a first for the great state of massachusetts, the commonwealth elected its first female u.s. senator. elizabeth warren defeated scott brown. she got 54% of the vote. brown got 46%. harvard law professor takes back the seat once held by long-time massachusetts senator ted kennedy and credited her victory to the grassroots efforts in the bay state. >> massachusetts is a very special place. this one was grassroots all the way. these were people who showed up in living rooms and kitchens and school auditoriums, who held signs, who called neighbors, who really made this happen.

and they saw this race as a race about what kind of a people we are, what kind of country we're going to build and they wanted to be part of it. and they made it happen yesterday. >> warren's senate seat was one of two picked up by the democrats last night. let's go back to kate for more. >> thanks, john. u.s. markets are moments away from opening. just minutes from opening bell. it will be the first glimpse of what investors think of president obama's re-election and really the balance of power in congress that will probably weigh heavily on investors' minds this morning. main street want iing to find o how wall street is digesting the obama win. the opening bell is covered like no one else. christine romans, anchor of "your bottom line" is here with me. >> futures markets are coming down, dow futures down a20 points, s&p down as well. headlines in business world are obama wins second term. what's he going to do about the

fiscal cliff. it's the same make-up of congress basically, same president, status quo. there hasn't been any movement at all during the election on f sich iscal cliff. that's a big problem for markets, business and global growth. the eu president made comments about concerns of unemployment in the european union. there are concerns about europe's growth and stability that's weighing on investors' minds this morning. john boehner will have a press conference at 3:30. that will be very big. >> laying down a marker. >> that's right. and what the president does in response to that is critical. what the gang of eight do with that in the senate absolutely critical. and what the house is going to do to get this fiscal cliff fixed, to overuse the word. it is huge, huge spending cuts. saul at once with huge, huge tax

increases. every family would see their taxes increase $3,500. it would mean a recession. everyone wants to avoid that. >> it's status quo everywhere, in the house, senate and in the white house. does that not provide any confidence for investors? >> they need to talk about real debt reduction and spending reduction. they still have this big problem of spending more than we bring in, right? you can fix in the short term your huge deficits to a degree by going over the fiscal cliff but at what cost? i don't think any politician wants that on their head, especially if they're running for re-election. >> keeping her very close to me. we're minutes away with, moments away, to remind you, from the opening bell. we'll have right after the break. everyone has goals.

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welcome our viewers in the united states and around the world. i'm kate bolduan, joined by a big group of friends here this morning. we're waiting for the opening bell that will be ringing any moment. we're watching it very closely. so is our alison kosik at the new york stock exchange this morning. what are you hearing from traders on the floor right now? >> first of all, expect stocks to sell off at the open. the bell will ring in about two minutes. expect the dow to drop at least 100 points. part of the reason isn't just because of the election. part of it is because of european central bank president made some comments today, saying the euro crisis is beginning to affect germany's economy. the big deal there is because germany has really been the checkbook for the euro crisis these days and the fact that now it's being said out loud that germany's economy is feeling the effects, being hurt by this, that spooking the markets. the other reason you're seeing the drop is because of the election. reaction because of the election, what's coming next. the focus for wall street now,

kate, is on the fiscal cliff. congress and president obama have two months, 55 days to deal with those tax increases and federal spending cuts. a deal has to be reach ed. wall street sees it this way, to avert possibly a recession as the congressional budget office has said, a spike in unemployment rate. one analyst telling me if a resolution isn't reached with the fiscal cliff that stocks will plummet and the economy will drown in quicksand. that is certainly all spooking the markets today. kate? >> we're watching, as we're preparing for the bell to ring any moment now. you said you're seeing a sell-off, a drop. correct me if i'm wrong, stocks are up overall in the obama presidency in his first term. right? >> that's a good point. we've been talking up until the election about the fact that a romney win would have been something wall street would have cheered because he was seen as pro business, more pro wall street. but if you look back at the actual numbers, look at this,

the stock market really has had a great run in the first four years of the obama presidency. the dow is up 60% since president obama took office on january 20th, 2009. broader s&p 500, which traders see as a better ipd cater of wall street is up 60%. president obama has had a good run on wall street as we heard the opening bell ring. and we'll wait for the numbers on the ticker. kate? >> let's watch this closely and bring in the team. christine, you had the same expectation? >> i do. rolling his eyes at me, thinks i'm overstating the importance of the fiscal cliff. no one thinks we're going to go over the fiscal cliff. it's how you fix it. that's what spooks wall street. they don't have confidence that it will fix it in a way that will bring confidence back to american businesses. who will build a new factory if you don't know if we're going to be in this position six months from now. they've got to fix it and signal

how we're going to start living within our means again as a country. >> dana bash can attest to this. >> don't tell me that. don't tell me that. >> with these fears in mind, right? >> that's exactly right. john boehner is a negotiator, if nothing else. he laid down the marker last night before we even officially called the house for republicans saying that they are not going to do anything long term and that there's no way they're going to raise taxes. on the other hand, you have democrats telling us privately -- i think maybe even saying it publicly today -- there's no way the president will go back on his campaign promise and hold firm on raising taxes for the world's wealthiest americans. >> they have a deadline. >> one interesting name in here. paul ryan, a guy who was central to all of these discussions for so long. what's he going to do during this whole debate? >> you can see the dow is down 126 points now 143. wall street loved, loved mitt romney and wall street does not

like barack obama for president. it doesn't. remember yesterday stocks were up more than 100 points. woel take that back today and see where you go from there. this is the status quo. there are still concerns about germany and europe. we'll wait to see if all these loss here hold the rest of the day. >> john's point, your question is a key one. paul ryan, who has become not only a huge figure within the republican party but vice presidential candidate. is he just going to go back now and be house budget chairman? that's a big deal on capitol hill. >> he was as strident as could be on the campaign trail and didn't talk compromise. i don't know that he's going to go back and suddenly become a different person. christine raises an important point about the business community, third leg of this important budget stool that has not played in my view in a very productive way in this campaign. they obviously spent a huge amount of money on mitt romney. they bet wrong.

the business leaders of this country coming together to talk in a productive way about the need for balance here. there's like this group, fix the debt, a number of business leaders who are saying stop with this ideology. we need a mix of revenue and budget cuts. >> and look at symbols -- >> go back to simpson bowles. some of those things. business leaders can pull themselves out of politics and be more proactive in solving this crisis. >> i think that's right. i think it's very important. this is one of those things where the wrong word can lead to the wrong mind-set and the wrong outcome. the word cliff is making people go crazy. it is not a cliff. it's not like the very next day taxes are going to go up. the appropriations target change, things begin to move in a certain direction. we should not be stampeded as americans into doing reckless or dumb things because a small group of congress people kicked the can down the road. there is an opportunity to finally do the right thing. here is how we're going to deal

with the budget, debt and deficit. we have to decrcreate jobs. growing our way out of the economy is the opportunity here. so if we put ourselves in a situation where we start cutting programs that we need, taking a wrecking ball to medicare, for instance, this country didn't go broke, quote, unquote, helping grand mom too much with medicare. it was the bush tax cuts and the bush wars. we have to have a real conversation about how to grow the economy. the cliff is forcing a level of alarmism and bad thinking. we should not be stampeded into a bad deal or sketchy deal. we need to have a good deal. >> ross, do you think republicans -- erick, jump in on this as well. do you think republicans are taking -- their takeaway from this election that they're going to change their position? john boehner is laying out a marker. same place where house republicans have been previously. >> the difference is that the president obama just won re-election. >> you think that will change the mind-set, though? >> the fact that -- look, in the previous set of budget negotiations, the president had

less leverage because he hadn't won re-election. now if we just do nothing, taxes will go up. and even though that's a loss for the country, as you can tell, it is a big policy win for democrats. and so there will be lots of democrats who are willing to play a little bit of chicken here and house republicans know that. look, obama and boehner came very close to a dole that would have raised $800 million in revenue last time. obama has a stronger hand to play. boehner is a negotiator. obama doesn't have to campaign for re-election. i would expect one set of -- a can kicking for the next six months and then some sort of deal. we're talking about this as a status quo election. in a sense, it is. but the status quo is favorable to liberalism now in a way that it wasn't a year ago because the president has won re-election. you will get tax increases of some kind. i guarantee it. >> as we're watching the markets still in the opening minutes here, do you think this sends a message as we're looking at this, to house republicans

specifically? the intersection of politics of this election and -- >> i think we're now, what, down 178. it sends a message to the republicans that the markets don't like the president. that's how they'll interpret it. we were at $900 million in national debt in -- >> the market actually really love this had president. stocks were up 75%. the business community doesn't like what they see going forward. >> they don't like washington. >> they don't like the president's policies on bank reform or obamacare. but the market has stocks, 401(k) investors have done very well over the past four years if you didn't dump out of the bottom. that's a whole other story all together. >> hilary's point about the business community getting more involved in a productive way, that has been happening quietly. i'm told a big group of major ceos from the west coast, from

tech community, they came in. they had meetings with everybody on capitol hill very quietly. big, big names. and i'm told that at least on the democratic side they said thank you, but where have you been? >> remember the debt ceiling? >> and companies like procter & gamble in john boehner's district, those companies who end up calling for balanced approaches in this budget can end up having more influence than maybe even the president with john boehner. >> stand by, everybody. democrats maintain control of the senate as you all know, by winning very close races. the new balance of power in congress. i'm shasta darlington in brazil. obama is a very popular man here. in local elections a number of candidates changed their name to obama to get more votes. the government on the other hand is less engaged because of the economy. the united states used to be brazil's main trading partner.

now it's china. i'm leone lakhani. people in the middle east don't like to wake up early. but this lot has been here through the night way before sunrise just to wuch those election results coming in. the u.s. ambassador was here a few minutes ago, saying he felt like he was in a vegas casino. he didn't know what time it was. >> i'm vladmir duthiers in lagos, nigeria, everyone breath lesl lessly waiting to see who would be the president of the united states. people here have always supported the president. it was no different last night. during a mock election, barack obama carried the day here in lagos. he won 254 votes to mitt romney's 35 votes.

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new york stock exchange, the bell ringing just a little over 10 minutes ago. everyone is watching the markets and how they are reacting to this new day. president obama winning a second term. i want to go over to alison kosik at the new york stock exchange with a guest. hey there, alison. >> hi there, kate. ugly start to the day on wall street, the day after we found out that president obama is re-elected. the dow right now down 179 points. the election is not the only reason we're seeing the dow

plunge. i'm with alan valdez, an analyst. >> we're back to business as usual, european woes weighing the market down, saying germany is weaker than expected. once that statement out of the eu, that was lights out. >> if the market was up before that statement, then the market is not necessarily unhappy about president obama back in. >> not at all. the market was up this morning before that statement. so this downward draft has nothing to do, really, about the election. i mean, we're back to square one. we were up 130 yesterday. we're down 170 today. it's like the election, a nonevent. it's back to square one. >> now that wall street is looking forward to the fisca al cliff when all those spending cuts and tax hikes could go into effect, what worry is there for wall street? >> that is the worry. the financial cliff locks mo s

looks more front and center. obama has never really been able to go across the aisle and work with the republicans, which he will have to do, to sort out this financial cliff. that also is weighing on the market. for the moment, tess all about the eu. >> what is the thought that some sort of deal will be reached with the fiscal cliff? it could send us back into a recession or make the unemployment rate spike again. >> sure. it would take us into a deeper recession than before and really be a big problem. i think even our politicians, as convoluted as they are, will get together and work this out. they're going to have to. it's that simple. we're looking for a president that will become like a bill clinton, come more to the center, work with the republicans, be more pro business, which we really need. we need a pro business president right now. we're hoping he goes more center. >> alan valdez, dme securities. back to you. >> alison kosik watching it all

for us at the new york stock exchange. thank you very much. politicians will get it done and work together on this fiscal cliff issue. in the end that is a major question, and it has us looking at balance of power in congress. you just heard it from wall street. what washington weaks up to, gridlock, status quo. everything stays the same. democratic president, republican house, democratic senate. dana bash with the balance of power. >> maybe they've been watching what's happened or not happened for the past several years. this is a perfect example. check this out, the house much like it did yesterday before the election. republicans still have a pretty big majority. democrats still pretty behind. look at these white seats here. these white seats represent the fact that there are still a number of seats out. we're still watching these races that are too close to call. the senate where there was a lot of drama. again, status quo. democrats are still in charge. by a couple of seats.

but look at those two white seat there, john. those are two outstanding races. perhaps among the most dramatic senate races. let's take a walk over here to see exactly what we're talking about. first, montana. too close to call right now. we don't have enough information to tell us whether jon tester will go on to win re-election against denny rehberg. same for north dakota. they're both holding on right now. if there was a republican wave, mitt romney probably did better, we wouldn't be talking about this. >> republicans thought they had nearly a sure thing in there. >> they did. what they didn't know is that the democrats would find heidi heitkamp to run, and she ran on pretty much every issue of the

president. massachusetts, the marquis senate race. scott brown who really shook up wz a couple of years ago when he won in this blue state. he was defeated by elizabeth warren, who raised a lot of money from liberals around the country. and indiana. this is probably one of the biggest heartbreaks for republican, or many of them last night. the democrat, joe donnelly beat richard mourdock, who beat a long time republican richard luger. he was likely going to win until a couple of weeks ago when he said in a debate bathe that perhaps pregnancy as a result of rape with his a gift from god. he he plummeted even with conservative women. >> where rape was an issue that came into play, both losing. >> the most beatable democrat as

far as republicans were concerned and they just didn't have even close to a win there. >> so frustrating for each party. senate terms are six years long. when you screw up and pick the wrong candidate you have to live with it for a long time. >> head of the campaign committee in charge of republicans put out a dire statement saying his party has to recalibrate what they're doing because they blew it from his perspective two cycles in a row. >> dana bash with the balance of power. thank you very much. what were the secret ingredients to an obama re-election last night? i'm ben wedeman in coy row. news of barack obama's victory came too late to make it into the morning papers here in the egyptian capital. it does say that obama is approaching victory in his attempt for a second term. most egyptians seem to prefer

barack obama over mitt romney. many of them saying they felt the republicans are simply too pro israeli. i'm reza sayah in pakistan where u.s. elections got heavy coverage on pakistani election, the results aired live on dozens of channels. four years ago, many here supported mr. obama. not the case this year. many wanted change. they wanted mr. romney. that's because they still don't like u.s. policy in the region, especially the drone strikes. >> i'm al goodman. spain was mentioned as a big problem among european nations suffering an economic crisis. the jobless rate here is more than 25%. so many spaniards are pleased president obama was re-elected. he said the world can't let spain sink. the johnsons, right? yeah.

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it doesn't matter whether you're black or white or hispanic or asian or native american or young or old or rich or poor,abled, disabled, gay or straight. you can make it here in america if you're willing to try. >> that was the president's victory speech in chicago last night. meanwhile other elections around the country, all kinds of history made. in wisconsin, the first woman elected to the senate and the first openly gay member anywhere elected to the senate. tammy baldwin defeated tommy thompson there 51% to 46%. she spoke to cnn earlier. >> what i would say in terms of crashing through that glass ceiling is, you know, if you're not in the room, the conversation is about you. if you're in the room, the conversation is with you. and that does transform things. but as i said last night, i didn't run to make history. i ran to make a difference.

and my campaign was about the struggle of the middle class, retirement security for seniors, doing right by our veterans when they return home from war. that wisconsin selected me to face those challenges is historic, but i think it was much more about confronting the very significant challenges that our nation faces right now. >> that was senator elect tammy baldwin. she and tommy thompson raised more than $20 million combined in that race. president obama can credit the latino vote for helping him win a second term. he captured 7 of every 10 hispanic voters. juan carlos lopez is following the story but let's begin with jim acosta in boston for us. hey, there, jim.

so talk to me specifically about the latino vote and its impact. romney was obviously never able to motivate latinoss to support him. is that the big takeaway for him when you look at really obama won them in big numbers last night. >> reporter: yeah, i think there are two big takeaways from what happened. it is obviously thes hispanic vote. but i do think the auto bailout issue for mitt romney was a big problem in the state of ohio. i was talking to some republican sources in that state as this race was winding down and they were first saying they think we'll win by three or four points and then right before the election, they were saying it's going to be very close and the reason why they were going to pennsylvania is it's a similar state to ohio, but didn't have the baggage of the auto bailout. the other issue is the his pan i go. i talked to the head of the

american conservative union, could y could you ban americo-could you. and he said the republican party has to change. it can't continue to alienate the fastest agreeing demographic group in country. when you hear from marco rubio and he said this repeatedly that the republican party has to find a different way to talk about immigration reform, that is not just the canary in the coal mine. that is the cuban american in the united states senate and somebody they probably out to listen to and the big takeaway from last night. and i want to say while i'm on live television before i go away and probably take a long vacation with my family, i want to thank my producer, matt hoy, who did a tremendous job on the campaign trail with me over the last year and a half.

all of our photojournalists who have been working tirelessly. and our romney campaign in-bed political producer, rachel, who did an amazing job following this campaign from start to finish. she was in new hampshire when all of it got started, followed it all the way to the end. and i just want to say that i'm very grateful to those folks and the folks at our cnn political unit who did an incredible yunt keeping us on tv all the time. so there is is a shameless plug. >> not shameless at all. >> i wanted to sneak that in. >> well said. everyone here in the stud i don't studio and cheering you on. everyone has worked tirelessly on this election and we applaud you, too. let's get back to the latino vote because we'll keep moving with the news. and i want to go over to juan carlos who anchored cnn he eed.

and i want to talk about the comments marco rubio made, but first the fact that back in february, you will remember that president obama told univision that his biggest failure he thought is that he hasn't gotten comprehensive immigration reform done, but he also said it wasn't for a lack of trying or desire. does that in order to maintain the latino vote that he won so big last night, does that have to be his number one issue going forward? what is the hispanic community looking for from president obama in a second term? >> i think this issue of the hispanic vote is a wake-up call for democrats, for republicans and the way that hispanic issues and influence in politics are covered. i say this because there were two conversations that were meant to be private but became public that i think highlight both democrats and republicans understand the challenges ahead. president obama speaking with the "des moines register" said that if he was to win re-election, it would be because republicans had pushed latinos away with their rhetoric and

that immigration reform would be his priority in the second term. now, he understands that democrats have to talk the talk and walk the walk and that's something that is still lacking. now, with mr. romney, remember, back in september when we heard about this fund raiser where he made the comment about the 40%, there was another comment mr. romney made that didn't receive a lot of attention, but he said and i'm quoting, he said we can capture women's vote, we're having a much harder time with hispanic voters. if the hispanic voting bloc becomes as committed to the democrats as the african-american, then we're in n. troub trouble as a party and as a nation. so he was aware of the challenge. senator rubio said last night his party has to find a way to find common ground with latinos. there are a lot of point where is there is commonalty, so just speaking to them in a different way and maybe this will be one of the paths that opens the possibility of immigration

reform. >> juan carlos lopez, thank you so much. we'll see you soon. our special coverage continues right now. well we come our viewers from the united states and around the world. this is a special edition of cnn newsroom. it was the president reelecteds last night winning a victory bigger than many thought he would win. meanwhile the house stays in republican hands, the senate in democratic hands. president obama gave his victory speech in chicago last night after 1:30 a.m. let's listen. >> democracy in a nation of 300 million can be noisy and messy and complicated. we have our own opinions. each of us has deeply held beliefs. and when we go through tough

times, when we make big decisions as a country, it necessarily stirs passions, stirs up controversy. that won't change after tonight. and it shouldn't. these arguments we have are a mark of our liberty. we can never forget that as we speak, people in distant nations are risking their lives right now just for a chance to argue about the issues that matter. the chance to cast their ballots. >> the president spoke -- he waited until after mitt romney gave his concession speech and mitt romney in turn waited until after 1:00 a.m. because he wanted to make sure the numbers in ohio were accurate, but did he gracefully. let's listen. >> the nation as you know is at a critical point, at a time like this, we can't risk partisan bickering and political posturing. he our leaders have to reach across the aisle to do the

people's work and we citizens also have to rise to the occasion. we look to our teachers, professor, we count on you not just to teach, but to inspire our children with a passion for learning and discovery. we look to our pastors and priests and rabbis and counselors of all kinds to testify of the enduring principles upon which our society is built. honesty, charity, integrity and family. we look to our parents from the final analysis, everything depends on the success of our homes. we look to job creators of all kinds, we're counting on you to invest, to hire, to step forward. >> reaction from all over the world to the election including from wall street this morning. kate bolduan watching that. >> we are keeping a close eye on how the markets are reacting this day after the election. alison kosik is at the stock exchange. how are things looking? >> not too great still.

the dow falling 221 points. really this doesn't really have anything to do with the election, it has everything to do with the european central bank president mario draghi, the equivalent of our ben bernanke, our fed president, he basically said germany is feeling the effects of the european debt crisis, that is spooking the markets today. one thing we are keeping our eye on, as well, some of the sectors that are moving. hospital stocks are up huge. community health systems, others like them, up 5% to 6%. one they were for sink, obamacare won't be going anywhere. more people will have health insurance and that meanssink, oe won't be going anywhere. more people will have health insurance and that means more ku customers for hospitals. but the reality is that it puts a big financial burden on big employers who are required to give health care benefits to full-time employees or those employers have to pay a fee. lower wage employers are already feeling the pressure and may

look to only hire part-time workers and not full-time workers to try to avoid that. also you factor in the fiscal cliff, all that can hinder hiring. not good timing as the jobs recovery is hopefully starting to take hold. we're also watching housing stocks. they are moving higher. the belief is that the housing market is recovering under the obama administration and financials, we're also watching financials, they are trading lower, anywhere from 3% to 4%. banks of america, jpmorgan chase, trading lower. they are the biggest losers on the dow. the banking sector hoped a romney win would lead to less regulation. banks are also taking a hit from europe today. >> we'll be checking back this with you. thank you so much. let's talk more about the market's reaction. ali velshi and christine romans here. down 200 plus points. you said this was a bigger selloff you were expecting. >> remember the market was up yesterday. had a good day yesterday. so this is taking back yesterday's gains.

>> it was up overnight after the results. >> in part of what the european central bank said about slower growth in europe. and you see the different sectors moving in the u.s. because of the president getting a second term. particularly those bank stocks. they would have liked to have had president romney because they would have hoped there wouldn't be the regulation. >> but nothing worse is happening to them. nothing has changed. so now the stocks are selling off because people don't read polls and what was likely to happen. you have me on the wrong side of the table because van is over there and i want to tweak him on the air because i heard him saying how this fiscal cliff isn't nearly as serious. thinking people can't imagine congress would be ridiculous enough to let us go over the cliff. thinking people also thought that the debt limit would be raised -- >> i don't think it's logical that it would happen and i'd like for it not to happen. if we didn't warn people, it

didn't show up at all in this presidential campaign, the most serious thing that can happen to the economy was mentioned once by president obama in the third debate. >> i will agree with that. you both have been talking about the fiscal cliff, but it's not something that really was taking center stage in terms of this presidential race. >> values were and that's important because the underlying values that president obama talked about was that we have a choice about whether everybody pays their fair share or whether we're going to give more tax cuts to the rich and hope that we succeed in a trickle down economy. so i think it's important to argue that the progress and i have viewpoint that says that we are going to have shared sacrifice here won even if they didn't use those phrases a lot. that's what will give the democrats power in negotiations. >> i'm not a favor of compromise and i'll tell you why. i think we've compromised our way to $16 trillion. we might as well have this fight now. ross is right, if the republicans do nothing or anything, taxes will go up

across the board. you know what, the american public voted. >> so the noncompromisers lose this battle because by doing nothing, taxes go up. >> they shaped this essentially to fail. congress set this up to have the super committee to find cuts to raise the debt limit knowing they would never find the cuts, to then do sequestration and then say let's not actually do sequestration. they might as well learn when they're that irresponsible, they ask what they -- >> van joernnes, jump in and th ross. >> just two things. the problem with the language of the cliff is that it creates a mind set that there is nothing worse than it set of cuts and there are they thinks that are worse. i want to make sure that we use the opportunity well. the president won which means that the idea of taxes going up on the wealthy, that's the only thing he was clear about from beginning, middle and end. so we cannot be in the situation

when we get bullied or sam sptad in to putting language in that's worse. >> does that music mean ross can't talk? >> he'll get the first word after we come back. aye lost control. surprise anyone? no. we'll be back right after th tt. dad vo: ok, time for bed, kiddo. lights out. ♪

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we are an american family and we rise or fall together as one nation and as one people. >> that was part of the

president's victory speech last night in chicago. you know, so many americans were glued to the television last night. there were people watching tv all around the world. we've seen reactions pouring in from foreign capitals and leader and the like. one of the things we've said about this election from the beginning is that it was not a foreign policy election. nevertheless, foreign policy still so important going forward. i'm joined by christian am am on pore. what's the difference with rarp policy from before? now that the president is reelected, what can he do with this thorny issue? >> it really boils down to whether a second term means you're freer to pursue a policy you want to pursue. president obama came into office talking about dialogue with iran. that never went anywhere and now there are unprecedented sanctions on iran. the question is what will have an impact. so there have been talks and

rumors of potential bilateral talks between iran and the united states on this nuclear issue. and indeed today inside iran, a leading foreign policy adviser to the supreme leader once again brought up the prospect of that and he's spoken to me at length about having direct talks with the united states on that this issue can be resolved as they always say in a framework of mutual satisfaction and mutual interest. you know, if mitt romney had been elected, then the issue was slightly different because given his rhetoric on the cam bekacam trail, he had convinced certain people that he was perhaps more willing to sanction a war on iran, sanction a unilateral israeli strike on iran. so those were some of the issues that separated the two. >> what about israel? i don't think i've ever seen a foreign leader inject himself into a domestic u.s. campaign as much as benjamin netanyahu did. but at the end, he seemed to move the israeli deadline for

action in iran or against iran until well after the u.s. election. so now that the election is all done and settled, what does he do? >> exactly. here are the two issues. on the one hand, he did inject himself into the election. and many people believe that it was no secret that prime minister netanyahu would have preferred mitt romney to be president of the united states. ness say the prime minister immediately congratulated president obama on his re-election and said that they would work together especially on issues of national security. for israel. what happens next? this is a big question. these so-called red lines that nobody wanted to ever define except for israel has now potentially been put off until spring or summer. but this just keeps pushing the ball down the line. kicking the ball down the court or whatever the correct vernacular is on that. but the point is what to do about this major national security issue that will confront the u.s. for a long time to come. and as i say, president obama has made it very clear, he's not looking for another war.

he is retrenching from war. he's ending the war in afghanistan. he does not want another u.s./middle east war. so whethill sanctions do the jo? many think it won't when it comes to not hurting iran but actually ending the uranium enrichment program. so will there be talks? this is what most thinking policy experts believe, direct talks between iran and the united states to resolve this issue. >> sometimes you think winning the election is the easy part. so many to do the morning after. thank you so much for joining us. so much to chew over this morning after the election. what does he do going forward? we'll have a lot more to talk about next.

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100% new. 100% mmm... wow, that is mmm... it's so mmm you might not believe it's a hundred calories. new yoplait greek 100. it is so good. cruised through the electoral college last night, the popular vote is divided really by only a couple percentage points. dan lothian is in chicago, has been there, is at obama

headquarters. dan, what are you hearing from them today? >> reporter: well, one top democrat told me it would be very important for the president to work very hard at being more inclusive of reaching out, not only to democrats, but obviously republicans. and you heard a little bit of that from the president last night where he was talking about this hard-fought campaign that at times was very divisive and the need to essentially unite the country. that will be very challenging, though, for the president has he returns to the white house later today. he will have to face some immediate issues, one of them being the fiscal cliff. and republicans are already talking about not wanting the to be very flexible on that matter. but the big issue for the president different this time than perhaps the last four years is the fact that the president no longer has to worry about polling, no longer has to worry about another election. so that gives the president a chance to focus on the issue at

hand and also reflect on his legacy. and that could play into the kinds of negotiations that we could be seeing over the next four years. >> and the obama campaign has long talked about how strong their ground game has been, the coalitions they built four years ago and have built on top of that. do they being athink and do you it all came down to ground game for them? >> there are sort of two points. first of all, on the ground game, this is something that was in place from the last election, the infrastructure was there, so they were not starting from the beginning. they built on that. they really targeted certain people, certain groups in certain heavily populated areas. they sort of tailored their message to them, empowered them, got them out to the polls. and they believe that that was important. but they also believe that the president's message really resonated with voters. especially in places like ohio where the auto bailout really

played well for folks who depend on the auto industry for their livelihood. and so this push to help the middle class and also this ground game that they believe was very effective, both of those are very issues that they think help the president win. >> dan lothian, thanks so much. you don't have to be a political junky to know that the presidential contest was not the only game in town. there were high proceed tile big money, big time senate races in the election last night. and dana bash is here to give us the low down on the balance of power. >> let's focus on the senate at this time. looks a lot like it looked before the election. for the democrats, it's exactly the same. 51 democrats plus these purple seats represent independents. one is bernie sandis from vermont, a newly elected senator

from maine has in order said which way, but they expect him to go with the democrats. 45 republicans. but let's walk over to some of the most interesting races and let's start over in wisconsin with tammy baldwin. she really had maybe people would argue a bit of an upset because it was a neck and neck race. she beat former very popular republican governor tommy thompson. just by way of noting history, she'll be the first openly gay senator laeblgtsed to congress. and then look down at virginia, another democratic seat, by the way, two open seats in democratic hands that are staying with the democrats. virginia is now going to be represented by the former democratic governor tim kaine. the other thing interesting about those two races is they're in states where obama did very well. he won. so there probably is a coat tail effect there. now let's go over to missouri. claire mccaskill is another kind of surprise. >> most endangered of all incumbents. >> and she was able to win

because she beat todd akin, the republican challenger, who made national headlines big time by his comments on rape and abortion. and let's just look at nebraska's because we haven't talked about this very much, but this is actually a republican pick up. the retiring democratic senator ben nelson, he has given this up basically for republicans and was a heartbreak for democrats. bob kerry, they recruited him to run and he never really took off in the polls. so we have another woman republican. >> fischer and mccaskill represents the biggest senate class of women we'll ever have. >> and there are a couple outstanding races, but so far we're seeing 19 female senators, that is history. right now there are 17. so not even 20% right now women make up more than 50% of the country, but baby steps. >> another chance for a pick up

in north dakota, also. we all know president obama, mits romney wi-- sorry. we all know president obama and not mitt rom any will lead this country over the next four years but we're just starting to scratch the surface of why. we'll break town tdown the exit next. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this.

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good morning. we want to welcome our viewers from around the world. we continue with our special election coverage. this morning measures aamerican waking up to a status quo election. president obama remains for another four years. he wins re-election on a couple percentage points. but because of where he won, it's a virtual landslide in the electoral college. and he faces the same divided congress when he returns to

washington. republicans retain control of the house, democrats control the senate. soledad o'brien explains more. >> the american people are so divided, they delivered the house of representatives to one party but the senate and the presidency to the other. >> it's clear that we spent $6 billion and we came back to a status quo election. nothing changed. but, b, it's also clear with this close of an election, it will be tough to cover. >> reporter: the division so deep that on the biggest issue, the economy, half the public pushed one way. >> the economy, he's leading us in the right direction. >> i really think we're in trouble. >> reporter: even a record $710 million in advertising in 12 battleground states didn't put people on the same page. >> that's why i'm running for a second term as president. >> reporter: but one thing that did budge was the coalition that obama put together in 2008. it got stronger. >> it doesn't matter whether you're black or white or hispanic or asian or native american. >> reporter: this time the president endorsed same-sex

marriage, something once rejected by 38 states and was embraced last nature by tight b ones. tammy baldwin will represent wisconsin. and that wasn't the only seismic shift that concerns republicans. >> not going to make the republican party the party that's pro-choice and pro gay rights. we have a party like that. it's the democratic party. the issues will be the economic issues and the hispanic and immigration related issues and republicans will have to figure out a different way forward. >> reporter: obama assumed the dream act and maryland passed a local version. and there were other signs. times this re a changing. colorado voted in favor of medical marijuana. the senate will have the most women ever. governor romney and president romney pledge to come together. >> we can't risk partisan beck

er bickering. >> reporter: recognition obama and he coalition hasn't gained much ground, but it spoke forcefully. >> so much to talk about. let's talk about it with our panel. everyone still sticking around. and still awake when which i'm very impressed with. ross, talking about what today means and what the next four years mean and how consequential this election is, you wrote an interesting coming lum and you said the age of reagan is officially over. what does that mean? >> it means that obama moved that his majority is real. i think there were a lot of conservatives who looked at the 2008 election and said, okay, obama won a landslide, but it was because the iraq war was mismanaged, it was because of the financial crisis. it was because the media got caught up in the narrative of america's first black president and so on. and things will revert to something like normal. and the 2010 midterms obviously encourage that idea. but i think the lesson here is

pretty clear, it's not -- this is not a huge majority, it's a narrow majority, but it's the majority that america has and we've been talking about how this is a status quo election because the composition of congress doesn't change that much. and it is. but on policy, the status quo favors liberalism. this is a big defeat for conservatives in the sense that the obama health care bill now stays. the supreme court obama will get to pick one, maybe two more justices bringing to four for his term. there are tons of regulatory stuff. even if there's taxes will go up somehow whatever we do with the fiscal cliff, so even though there will probably be grid will be on the big questions, i'm not expecting a big immigration compromise, certainly not a climate change bill. for all of that, the country has shifted left ward and it's a win for liberalism. >> i can feel him jumping on my back. because we were talking about the statement of status quo.

maybe by number and by majority, but you say it diminishes the impact. >> this was a highly consequential election. and i don't think it's a victory for liberalism. i think that misstates occurred here. first of all, the demographic trends beneath these two campaigns was in some ways the future versus the past. it was a risky gamble, but they were able to turn out the youth vote, women under 50, hispanic, and overcome an enl that the romney campaign had with senior citizens and white voters. look at the policy. first of all, republicans learn that there is such a thing as too extreme when it comes to certain senate candidates. that creates an environment for bipartisan environment. >> some of the tea party wave. >> right. because you have a more representative segment of the electorate.

and here's the real challenge and why it will be consequential. president obama can pick up the mantle of george w. bush and john mccain and said this was a bipartisan proposal before, let's pass it. he can say bowles-simpson was a bipartisan plan, let's pass it. and the real question comes is by partisanship becoming a partisan idea. >> that already exists. but i think -- >> democrats only. >> no, i think for both sides. but the key here is you're talking about the fact that republicans may have to compromise, democrats may have to compromise. that might be true, but listen to what we're already hearing from republicans for example. john boehner is saying this is something that he thinks he can get his priorities on. no way. he's putting the line in the sand already. so republicans may be talking generally about the fact that the republicans have to do soul

searching. but lo do thhow do they get ove reality that it's all about voting and the system is the way it is. primary voters elect their nominees and they're hamstrung by that. >> i know what the democrats will say and to a degree i know what the republicans will say. it is still an open question in my mind, though, that the coalition that won barack obama twice, is it his or is it the democrats? the democrats say it's the democrats. but they didn't show up in 2010 despite the democratic president, the unions and others trying to get them out. republicans i think will take a gamble and say this is his coalition. >> there was a backlash against the backlash. obama came in and there were elements that were very nasty, very ugly and then you hear the talk in 2012 about the enthusiasm gap. it turned out it was a myth. what everybody missed was a determination of african-americans who came out

in record numbers. again, naacp a hero. the youth vote. our coalition held. this is the most important thing i can say. it was not a one time fluke. our coalition is stronger now than it was before. so, therefore, it is not a status quo election. you can throw filibuster after filibuster at this president, you can put a ton of money against us and the coalition held. so now you have a different calculation on the other side. >> it is a fair point to say does this point need to be proven in 2014 for to really matter. and that's a fair question. but the fact is that president obama set this outright at the front he said. he said this is not a referendum on me. this is a choice between two directions in this country. and i think laying it out so clearly is actually what ended up winning this for him.

because he created two different visions. that's the point van is making. those two different visions are not necessarily compatible. >> but president obama won 16% of centrist voters last night. that is not close. that is a significant shift of the moderate majority in part a reaction to what's been perce e perceiv perceived -- >> but the republicans elected in the republican wave, they were doing what they say -- >> you're overovergeneralizing. is mitch mcconnell going to say i'm going it make sure he's a two term president? >> you've been talking about ground game and what you learned and what we now know is real. one of the things i do know is real is the ground game. in the old be days, when a campaign staff would say we'll turn out our voters, we'll all get it on the ground, and then they say you're done. but i'll tell you, after bush in 2004 turned out ohio, after

obama did it, i'm a believer. the ground game matters with the technology we have. >> republicans this time around said that they could match the obama ground game. >> it was a lot of hype on the republican side. not only do we know that now, but the problem is you had a number of consultants in the republican party who decided we're going to keep the data for ourselves, don't you go set it up. in 2008, democratic consultants were told, you know, what we'll do this this chicago and it worked. republicans have to start doing that. consultants are swimming around like scrooge mcduck this morning. >> this will be a very different election in 2016. the demographics of this country are changing. that is a permanent state of affairs. >> let's talk much more about that. obviously there is a lot to talk about here the day after the election and what the next four

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>> let's take a look at the dow. it is deepening it losses. right now 231 point loss. that's going to hit you right in your 401(k). it was not this way overnight. there was a chance that barack obama was going to be reelected the president of the united states. and unless everybody in wall street had their heads in the sand, i don't understand why they would be that surprised by this. this isn't actually about -- most of this is not about barack obama being reelected. most of this is about europe, some problems in greece again. mario draghi, chairman of the european central bank, saying that growth in 2013 will be weak he e weaker than expected. so remember that barack obama who some people have called a socialist, under him the stock market has more than doubled. >> let's talk about what faces the president on his i guess

first new day of the second term. mohamed el-erian is here. welcome. tell me a little bit, i think the stock market reaction tells us this president has the same old problems even though he has a new day and new material. >> yeah. if you look at when the stock market went south, it happened just past 7:00 a.m. your time when president draghi of the european central bank came out and confirmed what many people suspected which is that europe was slowing and that the locomotive of europe, germany, was slowing. that has scared a lot of people and in addition there are riots going on in greece so everybody suddenly was reminded that there is something else going on and that is called europe and that that problem is not going away. and that will be a headwind for us as an economy and for us as a market. >> the other big headwind is the fiscal cliff. you wrote an open letter to the president saying

congratulations, here's how to fix the economy. and the first order of business on day one is averting the fiscal cliff. what are you suggesting the president do? >> so it's critical to do no harm. so the president has to reach out to congress and hopefully after some soul searching among the republican party of how do they lose the election, you'll get a lot more compromise and the president has to lead a compromise that in the first instance results in a mini bargain. then once it that headwind is out of the way, we can pivot to the more constructive elements long term which is long term fiscal reform, improving the functioning of the labor market, improving the flow of credit to small and medium term enterprises, and improving housing and housing if i nance. so in the short term, we move the headwind from the fiscal cliff.nance. so in the short term, we move the headwind from the fiscal cliff. beyond a that, put in conditions for high growth and it can be

done if there's political collaboration. >> you've written this in fortune magazine. we've published it on cnnmoney.com. it's required reading for anyone who needs to understand the fiscal cliff. it also strengthens a view that we have at cnn that you are a contender for the position of treasury secretary of the united states. >> i would forget about that view. i am so happy at pimco that that's my only focus. so, no, on the contrary, i think a lot of people in washington are ready. what they need is the political context to go forward. after this election, there's a higher chance that we may get that political context. >> you have great expressions for things at pimco and you don't get credit for it, but bill gross, your partner there, has said that the reason that the u.s. interest rates are so close is that you're the cleanest dirty shirt.

that's the united states right now. at some point when does that shirt become too dirty to keep wearing? >> bill is superb in taking very complex issues and summing them in a very simple but insightful way and the u.s. being the cleanest dirty shirt is a great way of saying why is it that our bond markets are doing so well. two things have to happen for us to be just dirty as opposed to the cleanest dirty shirt. one is europe has to improve. and that is a big, big challenge. and the other one is that dynamics have to get worse a lot quicker. if you are to look out the next six to nine months, neither of these things will happen. so for a while, we'll be the cleanest dirty shirt and what's critical is that the politicians have to take advantage of that window to move forward. otherwise we'll face some really significant problems for future generations. >> all right. thank you so much.

cleanist dirty shirt, sometimes you feel that way going to the voting booth. when we come back, we'll talk about where the evangelical and faith vote landed last night. >> we are not as quided divided politics suggest. we are greatest than the sum of our individual ambitions and we remain more than a collection of red states and blue states. we are and forever will be the united states of america. a european-inspired suspension, but not from germany. ♪ a powerful, fuel-efficient engine, but it's not from japan. ♪ it's a car like no other... inspired by a place like no other. introducing the all-new 2013 chevrolet malibu, our greatest malibu ever. ♪

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frankly i feel obama basic policies are good for that nation. and the nonaggressiveness that he shows in his foreign policy is good for all of us. >> we've sliced up this election in every imaginable way. who voted for whom and why. it's one of the great things to do the days after the election. one of the most fascinating

things to look at is religion, faith. which faith groups voted for which candidate. >> you had two states that voted to support same-sex marriage, right? and you had christian leaders who had been concerned about some of the social positions the president had taken. so how did it all play out nationwide? 29 respect abo 29% of people who voted were protestant and 37% voted for barack obama. the cath thick vote, 25 brs of those voting were catholic and half went for barack obama. >> catholics almost always considered a swing vote. those numbers almost definitely padded by the latino vote. >> no question. and let me talk about are you a born again christian. 74% said they were not born again christian. but when you look at the board who consider themselves born again christians, 26% said yes

he, 78% went for mitt romney. the mormon candidate who early on in the race many born again christians were really learning about that religion in the first lay place. and nationwide, shares my values. 27% of people at the exit polls said they wanted a candidate who shared their values. of those, 55% said mitt romney and 42% said barack obama. >> interesting. you asked who cares about people and which is sort of the same question in a different way. president seemed to do better. >> 81% of people went for barack obama. >> that is a huge spread. >> he connected with the middle class and that's one of the reasons why he look at the economy questions, the conventional wisdom was mitt romney was better for the economy, but barack obama connected with the middle class. >> i have to say, that blows my mind this morning. thank you so much.

it is magic. that's why they call it the magic wall. >> christine romans blowing the mind of everyone in the studio right now. let's talk about the role of faith and values on the vote last night. hillary, you were really surprised when you heard that 81%. >> the 81% cares more about people. because i think that was kind of the bellwether of this election. and barack obama went through the campaign, reminding voters that he's been on their side, that he's been steady leadership, that he has focused on middle class, that he is taking care of the poor and the elderly. and mitt romney just i think never got past the bain capital ebbs and the notion that he was essentially a money man first and a leader second. and that in and of itself is a mandate for leadership. it's who is going to care more about their people and what can president obama now do with that mandate for leadership.

>> i think that's exactly right. i think he won on that point. i was concerned and disturbed for democrats, though, to see the christian concern about this party. this country is becoming more secular. i think the democrats can today lewd themselves and say we'll ride the secular wave. we aren't that secular. for people of faith in the democratic party like myself, it is becoming less comfortable. you feel like you're out of a closet as a christian. >> what does that mean? >> i'll put this way. when you're with republicans, you can talk about god right up front, church right up front. among democrat, it's a little bit dicier. you're afraid you might offend somebody. i think that that makes it tough for us with latinos. the african-american community is deeply religious. we don't see the church as a source of oppression. we see it as a site for liberation. we've got to figure out some way to have a faith honoring democratic party.

that is very disturbing. >> the challenge for republicans with latinos in particular is the reverse, right? you you see that cares about people versus shares my values dynamic, republicans are not losing the latino vote because they're too right wing on social issues. they're losing the latino vote mostly on economic issues. obviously the party does not need the todd akins of the world talking about how women can't get pregnant from rape and so on, but i think twll be a lot of pressure on the republicans from the party elite to say, okay, look, let's get rid of the yahoo!s and fundamentalists and pivot to the center. but there's a center there that's latino religious, more economically moderate that the republican party has to be able to win. >> what role do you think faith and religion played in this election? >> i'm actually surprised the number for romney was actually that small.

i figured it would have been bigger than that. which to some degree there still remains the evangelical core. you can say it's about whether it's because he's a mormon or because he was the original author of what became obamacare or whatever, a lot of them remain skeptical on abortion, on obamacare, on what have you. >> does it have to religion or accusations of flip-flopping? >> i think it has to do with accusations from republicans. i was at the meeting where they could not bring themselves -- he had been so hostile. it was still a huge number. and it probably wouldn't have made a difference if it went up to 80% or 90%. but at the same time, you do have a republican base that is to the right of a republican establishment and iconically

really in line with a lot of hispanic voters on those social issues. >> we'll hold right now. a lot more to talk about obviously and also more reaction coming in from around the world. >> that's right. our american election was an international phenomenon. let's get reaction from all over the world. our reporters from across the globe. >> i'm here in kenya. when they found out president obama had won the re-election, let's look at some of these amazing scenes. ♪ they spent all night in this village watching the results come in on cnn. this is the hometown of president obama's father. there there are family members all over the place. it's the center of obama mania around the world. i think they'll be partying here all day long and well into the night. >> i'm here in tokyo. the salary men are heading home on wednesday evening and they are digesting the fact that

president obama has earned four more years. the news did not move the markets here in any major way. just a slight upstick. but it is the economy on the minds of many people here. keep in mind, japan is the third largest economy in the world and one of the united states' biggest trading partners. people say they're happy a decision has been made and now president obama can get back to the task at hand. >> i'm in pakistan where the u.s. elections got heavy coverage on pakistani television. the results aired live on dozens of channels. four years ago, many supported mr. obama here. this year, not the case. many wanted romney. they wanted change because they still don't like u.s. policy here especially those drone strikes. one politician said he hopes mr. obama will end the drone strikes and the conflict in afghanistan. pakistani arm official said it doesn't matter who is in washington, nothing will change for pakistan.

a huge victory and four more years. president obama wins re-election and in the end, it wasn't even close. >> you made your voice heard. and you made a difference. >> with a gracious concession, republican challenger mitt romney made a humble request of both parties. >> to put the people before the politics. >> no republican has ever won the white house without ohio. >> in the end, the battleground state of ohio put the election out of reach. >> the president of the united states defeats mitt romney. >> but the nation remains a house divided. as the balance of power holds firm on capitol hill. a call for unity. >> we remain more than a collection of red states and blue states. we are and forever will be the united states of america. >> this morning we have every issue covered. can the white house and congress work together to fix the

economy? will the partisan gap now close? with the empire state building bathed in blue light, this much is clear. >> let the world know that 11:18 p.m. on the east coast of the united states, we projected this win, the re-election of barack obama for another four years. we want to welcome our viewers here in the united states and around the world. i'm kate bolduan. hello, everyone. we continue our special coverage of the 2012 presidential election. for the first time in months, president obama woke up today knowing where he'll be waking up for the next four years. and yet hours after the race was called and mitt romney con seized, there's still the matter of florida. if the president holds his lead, he'll pad his electoral college margin.if the president holds h, he'll pad his electoral colle margin.

we're still watching that as well as many other things. either way, there are more fights ahead. listen here. >> when we make big decisions as a country, it necessarily stirs passions, stirs up controversy. that won't change after tonight. and it shouldn't. these arguments we have are a mark of our liberty. and we can never forget that as we speak, people in distant nations are risking their lives right now just for a chance to argue about the issues that matter. the chance to cast their ballots like we did today. >> much more on the presidential election to come. but first, we send to john berman. and we do have breaking news this morning and it has to do with the stock market.

we've been watching it drop and drop. just a few seconds ago, it was down 300 points. now creeping up from its lows. our experts tell us it doesn't have to do necessarily all with the u.s. election. so what is this about? >> it's not just the election. the markets expected barack obama would become president and when you look at the makeup of the house and senate, it's pretty much as expected, as well. but earlier mario draghi said growth would be weaker than expected in europe and specifically in germany. germany is the one who has been, you know, carrying some of the other countries in the region. so this is still a problem. also we just talked to know ham m mohamed el-erian and he said there are still problems with greece. so the same old problems. weakening europe, eurozone crisis, we still have the fiscal cliff.

>> the bottom line is things have changed. since we started following markets, things change. you used to be able to point to exactly why the market is up or down. most trading is done by computer on the basis of momentum. but if anybody is surprised that barack obama had and at least better than even chance of winning, then they shouldn't be handling anybody's money first of all. and secondly, there are -- these markets, we've all been up way too long, which means i got to look at futures and so did christine far more than we normally do. they were all over the place and then mario draghi makes this speech and they tank. and that's where it came from. >> mario draghi may not be a household name to people. but he's held our economy hostage. every time this guy speak, the market goes up or down. >> he is the chairman of the european central bank which does

not have the ability to i don't want to use the manipulate wrongly, but to have an effect on the european economy the way the fed does in the united states. >> they can't do to their economy what is we can do what the fed can did here. but hospital stocks are still up because the markets are saying obamacare is here to stay. bank stocks are down sharply because the markets are saying, guess what, we're going to get our financial reform, this will be a beg fight over regulations. >> had this happened yesterday or two daysing a go, we would see a negative ad on this.fight. >> had this happened yesterday or two daysing a go, we would see a negative ad on this. is there finger pointing today? >> of course. there will be. and part of the problem we have right now is that for at least the past year and a half, we've been living in a fact free political environment where anything that goes wrong anywhere in the world -- >> not on cnn. only elsewhere. >> except on cnn. but honestly, literally anything

that happens in the world, you'll blame it on president obama and i think that has disserved the country. i think it's disserved the problems we now have to go into. i'm glad we're trying to make this clear this has nothing to do with president obama. here's what most people are worried about at home, though. they still don't know how we're going to get this fiscal showdown challenge. they still don't know where the jobs will come in fr and if anybody learned anything in washington, d.c. so if we chase the ball around, barack obama killed the stock market and will kill your kid next, we'll miss an opportunity to do something. >> the reality is that americans should be focused on what's happening in europe. from a political point of view, obama has been very lucky actually over the past three months that europeans have been able to like we do in washington kick the can down the road. but if you look at the politics of greece which was on everybody's mind in their last election cycle, the both the socialists and the fascists

parties in greece have gained more ground since the last election cycle, the odds of the eurozone actually breaking up have gone up. and i said of what happens in the u.s. >> so we need to be stronger here at home because we know if we can just say that's true, that's terrifying -- >> i have to stop you here because believe it or not, we have election news. let's go to kate for that. >> and we can now -- cnn can now project that john tester will retain his seat for the senate in the state of montana. john tester was considered probably one of the most vulnerable -- one of the vulnerable democrats up for re-election in a very tough re-election battle,s a very tight race that has taken us all the way through to today. he defeats the republican congressman with 83% of

precincts reporting, john tester will retain his seat in the senate. a democrat to retain his seat that doesn't change obviously t balance of you power, but does help their majority in the senate. p. >> this is a wow. john tester was supposed to be endangered and in fact it does change the numbers here. this guarantees the democrats will actually gain governmental ruling voting seats in the senate. >> i'm stunned. this is a big deal. in part because it shows just what a bad night republicans had when it came to their senate candidates. the democrats have the odds stacked against them. a guy like john tester running in a very red state that president obama lost by a large margin had a big target on his back. guess what, he pulled it out because he kept running as a montana democrat. he was running as a laborer, farmer democrat, he stands out from a lot of democrats in the senate.

and he's been vindicated for that. and montana actually has unique history of ticket splitting. it is the state a that has the lie e liest level of ticket splitting in our political history and they showed that again. they voted for romney as president and john tester for senate. >> i have to disagree with you on that one. he was a horrible candidate who the republicans put up. they largely shut out other guys. their national republican committee went around the country to races this year where they said these are the most electable. george allen, hey, let's bring him back. tommy thompson, let's bring him back. rayburg who has a personal history that didn't sell well with the voters given his past and it doesn't work for them. if the the republicans aren't willing to get fresh blood to run for the senate and the house and they just want to recycle the usual suspects who keep losing, then they'll keep losing. >> we'll talk more about this

you about a we're lucky enough to have breaking election news this morning. at 11:15, always great to have election news here.have breakins morning. at 11:15, always great to have election news here. but we have to go to break. ted cruz from texas will join us next. but first international reaction to what president obama -- to president obama staying in office. >> tonight more than 200 years after a former colony won the right to determine its own destiny, the task of perfecting our union moves forward. one is for a clean, wedomestic energy future that puts us in control.

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i'm at a breakfast election party and people in the middle east don't like to wake up early, but this lot has been here through the neat way before sunrise just to watch those election results coming in. the u.s. ambassador was here a few minutesing a ago saying he like he was in a vegas casino. now, there are some 40,000 u.s. citizens based in the uae, some were here watching the election results, but there are members of other nationalities including members from the community here in the uae who all gathered to watch those election results. there's a huge interest in the u.s. elections here because as we know, the middle east is

going through a time of change and evolution and everyone is eager to see how the u.s. administration addresses those changes. >> so the election is being watched all over the world. and the elections clearly not over yet because just a few minutes ago right here on cnn, we were able to make a new proceed jeks that senator john tester from montana has been reelected, which was a big surprise to a lot of us at this table and a lot of republican establishment types. and we have to talk more about this. we brought in dana bash. she was on with cnn international and ran here as soon as she heard the news. >> it really is remarkable when you think about the fact that john tester is a democrat in a very red state who won six years ago.n tester is a democrat in a very red state who won six years ago. up until election day, it was razor thin race and he was able to pull out because it's sort of

the way rahm emanuel and other democrats began to run several years ago, he matches the state. he is conservative, is he a rancher, he wears his flannels and he talks like they do and connected with them. >> how much does luck play a role? a lot of senate democrats benefitted from the weaksness of their opponents. >> not in this case. denny rehberg, many republicans thought that he was going to be a good candidate. i will say in the end he had some bad press about some voting accidents and thing -- boating accidents and things like that. he's laughing over there. >> but initially they felt they were going to be in pretty good shape because he is somebody who has won in montana and in the house. but, yes, they didn't have the greatest candidate there at the end of the day.

but this was supposed to be the seat just like claire mccaskill in missouri. and we were talking about this earlier. the big picture thing that this says is not only did the democrats not lose the senate, they gained a seat if you consider angus king likely to be the newly independent senator from maine likely to caucus with democrats. >> we have an exciting interview with a new senator incoming republican many consider the all-star of the incoming senate class. let's go to kate bolduan for that. >> the incoming senate class includes a texas republican who has never held elect ted cruz taking the seat of kay bailey hutchison. thanks for coming in this morning. congratulations. >> good morning. it's great to join you. >> so, senator, you won your seat on a day when 71%, an amazing number, of hispanic

voters backed president obama. what do you think this says, what do you think your republican party should learn from that statistic? >> the president had a very good night last night and republicans had a really lousy night all over the country. and i think at the end of the day the president should enjoy his victory, but i think what it says going forward is we remain a nation very, very divided. the popular vote was almost 50/50 for a good portion of the night last night. it looked like president obama was going to lose the popular vote. and at the same time that americans reelected president obama, they also reelected a republican house of representatives. so this country remains divided and the question now is are we going to be able to have some real leadership to pull back from the economic and fiscal challenges that i think are really grave and they're looking

for leadership to address. >> one of the first things you'll face when you come into office is the looming fiscal cliff. and compromise is something that everyone is starting to talk about is needed if they're going to pull something off to save the country from going over this fiscal cliff. but you told supporters yesterday, you said if he, president obama, continues down this path, i will spend every waking moment to lead the fight to stop it. does that mean compromise is a dirty word in your mind? >> well, it doesn't. actually inhose remarks, the first thing i said right before that is i said if president obama means what he has said on the campaign trail, if he means what he said last night in his acceptance speech, that he wants to work across the aisle, that he wants to tackle the deficit and debt, that he wants to reduce the burdens of government on small business and entrepreneurs to create job, then i'm happy to work with

president obama. but, and this is the second half, if he doesn't mean what he says, if that was simply what he said on the campaign trail and if he wants to go back to the path of the last four years to more and more spending and debt and regulations that kill job, i'll do everything i can to work to stop from us continuing down that path because that would hurt this country. it is killing jobs and a lot of people are suffering as a result. >> as you are prepared to come to washington, one thing some folks are talking about this morning is that this is a status quo election and that that is going to mean more gridlock in washington which is what is behind why congress has such his tore he canni lnicly low approv rating. what will you you do to change that when you come to washington? >> well, i think the next four years may prove very challenging. it depends really on the president. what is he willing to do.

if you look back two years ago after president obama faced a loss of the house of representatives, an overwhelming election result in 2010, president obama didn't do what bill clinton had done when the same thing happened to him which is move to the center, work with republicans and the house, have a balanced budget, reform welfare. instead president obama doubled down and went further left, more spending, who are de more debt,. if he reads last night as a mandate for more of his economic agenda, then i think we will have gridlock because i don't think republicans will be willing to go along with poli policies that will hurt this country, that will result in more people losing their jobs and that will result in even more debt jeopardizing our future. but if he's willing to follow bill clinton's model, he cl campaigned a lot with bill clinton, if he will follow his model and work with republicans,

reduce spending and regulations, i'll be happy to work with him. >> all right. congratulatio congratulations. sounds like we have big battles ahead. our favorite wolf blitzer is getting miked up again to join us again. he got no sleep. plus a closer look at the exit polls that we've been chewing through and who helped put president obama over the top.

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barack obama in 2008 catch lightning in a bottle, would he be able to put together the same winning coalition that he had four years ago this year. well, we now have our answer. and christine romans shows us. >> and the answer is yes. let's look at age. 18 to 29, 19% of those voting. and they preferred the president 60% to 37%. look at 30 to 44-year-olds, they also chose the president by a margin of 52 to 45. and then mitt romney starts to get more traction here when you talk to 45 to 64-year-olds. and then of course the saenor s saenor citizens. let's look at how you break this out by gender. women went for barack obama again. p 55 about respect to 44% and they were 53% of those who voted. among men, men preferred mitt romney. 52% to 45%. and then let's break it down now by race. 72% of those who voted were white. look at the margin here.

59% to 39%. so president obama trailing by 20 points among white voters. how does he make up for that? african-americans continue to be a solid voting bloc for the president. and the latino vote for the first time in history double digits. 10% of the vote there. 71% to 27% going for obama. this is so incredibly important in this part of the country, remember we were so closely watching colorado and nevada, very important here in part because you look at the demographics, and this shows you the concentration of latinos in the southwest. and you look at all of these spots here and now they're turning from red to blue. >> 71% of the latino vote. that coalition between the youth vote, women vote and minority vote held strong for president obama and could be a sign of future elections to come. thanks very much. meanwhile this election $6 billion spent and still a divided government. can washington break the gridlock in the next four years?

more coming up. >> i'm at one of india's outsourcing hubs where people have been following closely. this time the rhetoric hasn't been as negative as it was back in 2008 because the situation has changed. india call centers no longer provide just basic cheap back end services to the united states. they've started to provide higher value added services. as people in call centers here say, without us, corporate america would be disabled.

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we want to welcome our you viewers here in the united states and around the world. i'm kate bolduan along with john berman. it is 11 ch:30 here the on the t coast, 8:30 out west. a lot has happened overnight.

all that time, all that effort, all that money and post-election america looks an awful lot like pre-election america beginning with the president, barack obama becomes the nation's third president in a row to win a second term. and if he's daubtsed by the prospect of at least into more years of divided government, he's not letting on. >> when we make big decisions as a country, it necessarily stirs passions, stirs up controversy. that won't change after tonight. and it shouldn't. these arguments we have are a mark of our liberty. and we can never forget that as we speak, people in distant nations are risking their lives right now just for a chance to argue about the issues that matter. the chance to cast their balance the lots like we did today.

>> as for congress, democrats cemented their hold on the senate. and we just called the race in montana. republicans held on to the house. over to john berman. >> we called the president for president at 11:18 eastern time p.m. last night. of course there was one state that we didn't call and they are still counting this morning. that state, the state of florida. and ashleigh banfield is down in miami where apparently the election is still not over. what's going on? >> reporter: yeah, are you surprised? come on. florida for crying out loud. everybody here woke up and they stayed up late and found out the results, they heard it on tv. if they woke up to the miami "herald" this morning, they saw it's obama on the front page. what some people didn't know was that their state had nothing to do with it. florida has not actually made a call. there's a lot of reasons for that. some very long lines. you saw me showing them to you yesterday at the polling place i was at. four hours for some people. then i wake up to find out later

on some of those people actually ended up waiting six hours at other polling stations and some floridians were casting their ballots at 1:45 a.m. this morning. that is well after the time you just quoted that the the president was actually called the president. so very frustrating for a lot of people here in florida. and late last night, the u.s. postal service dumped about 18,000 absentee ballots on to the elections officials at miami-dade county. so guess what they spent the night doing? 50 of them in a warehouse opening ballots and verifying ballots and counting and scanning ballots. and that went on all day. i just got off the phone with one of those county officials and they actually expect to have some of those results right about now, between now and the top of the hour. however, that's not the end of it either. no. because they still have the provisional ballots. those can't especially be touched until tomorrow. they'll start the process with those tomorrow. they'll get to them by saturday. they'll probably have a

certification by the 20th. these guys over here are from other countries. sven is from germany, manuel from portugal. were you surprised? >> yes, you expect to have a vote and there is no vote still 37. >> welcome to america. welcome to florida. so basically we spent our morning having a lovely brunch, a miami south beach waiting for results. >> you look at the map of florida, you see a whole lot of red. barack obama carried 13 of the 67 counties in florida. so why is this so close? all right we >> reporter: miami-dade is really the issue. the lines were long and the ballots very long. so think about just the time to scan a 9 to 12 page ballot. it's not like throwing one through in a couple of seconds. we also had tons of reports of those optical scanners jamming. and it happened several times at the place we were at temperature. so i know that was actually

multiplied throughout the 6,000 some odd precincts. but the issue really came down to miami-dade and those very long lines, those very long ballots and then the issues with some of those ballots that obviously were problematic in terms of scanning and counting. >> okay. bring us the news when it breaks there. always something in florida. from florida to ohio. ohio was just one key to president obama's victory. let's take a moment to listen to his acceptance speech from early this morning. >> democracy in a nation of 300 million can be noisy and messy and complicated. we have our own opinions. each of us has deeply held beliefs. and when we go through tough times, when we make big decisions as a country, it necessarily stirs passions,

stirs up controversy. that won't change after tonight. and it shouldn't. these arguments we have are a mark of our liberty. and we can never forget that as we speak, people in distant nations are risksing their lives right now just for a chance to argue. about the issues that matter. the chance to cast their ballots like we did today. despite all the frustrations of washington, i've never been more hopeful about our future. i have never been more hopeful about america. and i ask you to sustain that hope. i'm not talking about blind optimism. the kind of hope that just ignores the enormity of the tasks ahead or the road blocks that stand in our path. i'm not talking about the wishful idealism that allows us to just sit on the sidelines or

shirk from a fight. i have always believed that hope is that stubborn thing inside us that insists, despite all the evidence to the contrary, that something better awaits us so long as we have the courage to keep reaching, to keep working, to keep fighting. >> and 2012 will go down in the record books as the most expensive election in u.s. history to the tune of a whopping $6 billion for all the races nationwide by some estimates. but after all that money, the white house, congress, as we like to say, it has remained status quo. obama still the president and congress still split. so let's talk about the role of money in politics and specifically this election. take a look, $6 billion election. but also look at this where all of this money really was spent. it was all really focused in the 12 battleground states. i think we have colorado,

florida, iowa, michigan, we could run through them all. you have the 12 battle grounds there. but most of the money being spent, ohio, florida, and virginia. >> people need t-shirts saying i spent $6 billion and got status quo. but the republican governor association got republicans to 30 gubernatorial races. we haven't seen that in a very long time in this country. they did it because they kept a lot of it in-house. they managed it themselves. one of the problems you saw on the republican side nationwide is they to a degree outsourced a lot to outside groups. we have this unlimited -- it did hurt them in that it was so diffuse, they can't talk to each other under the rules. you had a lot of people stepping on each other's feet, you had a lot of people saying i'm getting results that weren't getting results. >> i'm a contrarian maybe on

this issue. americans spent $6 billion on halloween costumes this year. i don't think it's too much to -- >> that's ironic. >> i don't think it's too much to say we're going to invest in our government and in our leadership. so where the money comes from and how it gets used and the negativity of the ads, sure. let's talk about all of that. but when you look at the aggregate, into the disappointing. you look at some of these candidates like a john tn teste like a tammy baldwin, $20 million, $30 million spent against them. candidates matter. leadership matters. records matter. >> that's a good question. when you see all of this money spent but still some of the candidates who were way overspent, they still won. >> and there may be some billionaires waking up today who decide their money was not well spent and maybe that adjusts their behavior down the road. but let's into the be naive. you're seeing a

multibillion-dollar partisan economy in which consultants get ric rich.fe folks at home were sickf the negative ads. if you're doing it through super pacs, the whole point is to do a negative ad. so it leads directly to the influence of outside spending and the shadowy groups, the 051 c-4s that do not disclose their donors. and the ichtrs or somebody shou take a look at this stuff because the abuse of these organizations is unprecedented. >> it's true that they didn't get what they wanted. the super pacs weren't able to bite election booif t buy the elect. pe people feel like it's one

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president obama's victory celebration last night in

chicago. meanwhile the morning after, something of a rude grim greeting from wall street. the markets very unhappy this morning. it may not be all about the election. we're joined by alison kosik. what's going on? >> we are watching thes losses accelerate. the dow down 338 points. the dow trading below that 13,000 mark. you're right, this is really less to do with the election and more about what's going on with europe's debt crisis. what happened is germany is showing signs of slowing and that's a big problem because germany has really been the region's powerhouse over in europe. the country that's been signing the checks for much of the region during this debt crisis. and throughout we've been certainly lately talking about the election more than european debt crisis. but now that's moving to the front burner and wall street is certainly focused on that. investors want to know as well now that president obama has been reelected how he plans to avoid the fiscal cliff. he'll have to work with congress

and they won't have long to work out a deal. 55 days to come up with a solution on how to avoid those tax hikes and the federal spending cuts from all happening at once. many are believing that some sort of compromise will happen, but until then, the market will be on edge about it and as you see on edge about europe. we are also watching oil prices fall more than 4% because that usually happens when economies are having trouble, as well. we've talked about that. >> alison kosik, down 330 points and counting. thanks. back to you, kate. also still talking about the new day. president obama winning a second term in office and what that also means with the balance of power. wolf blitzer is here. he'll be joining our coverage. not like you ever ended. >> this is nonstop. we keep working. a historic moment. >> and keep feeding you more and more coffee. so you've had maybe a moment or

two to try to digest all of what happened last night. what would you say your big takeaway is from our coverage? >> i was i guess surprised to see that the younger people actual will yly showed up in bi numbers than they did four years ago. >> there was so much talk about the enthusiasm gap. >> supposedly they weren't enthused by president obama anymore, but they showed up and voted big percentages for the president and that helped put him over the top. and he got that youth vote, certainly got the african-american minority vote, his hispanics, women. he did go down on the white vote. the wheat vote was 44% for him four years ago, 39% this time. but he more than overcompensated.vote was 44% fo four years ago, 39% this time. but he more than overcompensated.

the ground game was very impressive. >> i never believed it before. i always thought when a campaign started talking about their ground game you knew they were in trouble, but now i think it's the signs to come. watching your 86 hours of continuing coverage -- >> you were in there a few hours yourself. >> one of the most fascinating parts was florida. just consistently tied. it was a lot worse than the romney people thought it would be. and that's when their mood changed. the map was changing it to blue, they were losing states, but you still felt they were most concerned about florida. i was communicating with them all night and you really saw their mood change. i'm wondering what that was like just to see those numbers come in. >> the numbers were really fascinating. i stood at the magic wall with john king and when we weren't on the air, we would look at miami-da miami-dade. we would look at broward, ft. lauderdale, palm beach county because those are the big democratic areas. he needed to win big in those three counties in south florida in order to really do well.

and he was winning huge in those three counties. the democrats had been concerned maybe they wouldn't get the turnout. but people showed up. and that certainly helped him. and then the i-4 corridor between tampa and orlando, he did well there, as well. and as a result, we haven't projected a winner yet. it's winner yet in florida. it's still very close. we'll see what happens in the course of the next few hours but florida was certainly there for the president. even if he winds up losing by a few votes, he did well. >> i think now looking forward, there's -- out of necessity. soul searching amongst the republican party. where do they go from here and what do they really need to learn about last night. one of the numbers you mentioned is that president obama got 71% in terms of the latino vote. that's an eye-opener and a reality check many are saying for the republican party. >> lindsey graham from south carolina made this point. just if the republicans don't reach out, find a way to bring in latinos, hispanics, they are going to be in trouble because that's the fastest growing part

of our population right now. and the other thing that was really fascinating, you noticed -- you've been reporting it as well, is that these ballot initiatives that support gay marriage. marriage equality. they passed. >> a watershed moment. >> really dramatic. maryland, for example, it passed. in maine it passed. and so in 2004, one of the reasons a lot of the pundits suspected that john kerry lost because they had these ballot initiatives opposing same-sex marriage. it turned out a lot of that republican base and helped the republicans at that time. but the mood of the country appears to be changing. >> and very quickly, too. because in maine, which last night passed gay marriage, just three years ago, 2009 they had a measure on the ballot which failed. >> i think one of the reasons is the president has come out and favored it, three years ago, four years ago, the president was opposed to it. he defended the defense of marriage act if you will. now he supports gay marriage and i think that has had an impact. the repeal of "don't ask, don't tell," for example. that's had an impact.

gays can serve openly in the united states military right now. if you speak to any of the four-star generals, as i have, there have been no problems. and there really haven't been any problems. all those fears over the years have not materialized. >> wolf, rest your voice. you're going to be back up at the top of the hour. we'll have more right after the break. again? it's embarrassing it's embarrassing! we can see you carl. we can totally see you. come on you're better than this...all that prowling around. yeah, you're the king of the jungle. have you thought about going vegan carl? hahaha!! you know folks who save hundreds of dollars by switching to geico sure are happy. how happy are they jimmy? happier than antelope with night-vision goggles. nice! get happy. get geico. fifteen minutes could save you fifteen percent or more.

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this is cnn breaking news. >> first we'll continue with our political coverage shortly. first i want to go to karen maginnis in atlanta for us at the extreme weather center. reports of an earthquake off of mexico, karen? >> it is off the coast of guatemala. and this has happened in the last half hour to 45 minutes. preliminary reports were of 7.5 magnitude. this is very close to the coast. here's guatemala city. and it was about 27 miles off the coast, about 20 miles deep. now the information that we have right now is that there was no

tsunami warning issued. that could change at any moment now. but 7.5 magnitude. that may be revised as we go throughout the afternoon. it looks like already one aftershock being reported. but we'll keep you updated on that and our other big story is the weather across the northeast and new england. we'll be updating you on that coming up in the next hour with the big nor'easter that is expected to impact those areas hit very hard by superstorm sandy. back to you. >> karen, you'll be watching that for us. we'll be coming back to you throughout the day. thank you so much. as we're about to toss it over to the next crew, but it's kind of -- there's a lot to digest and what all of last night meant. what are your final thoughts on what you've seen and the election and the impact? >> i think we don't even have a second to take a breath because in a couple of minutes, the senate majority leader harry reid will go before reporters and talk about what we'll all be focusing on, we already are, which is the fiscal cliff. how they deal with it.

you can bet he's going to lay that line in the sand. there is no way given the results they'll allow an extension of the tax cuts for the wealthiest. then at 3:30 eastern we'll hear from the house speaker. guaranteed he's going to say the opposite. so strap in. >> the beginning of the negotiations, laying down the markers. we'll see if it ends up like the debt debacle or compromise to be had. i don't think we have an answer on that. >> i'm still thinking about the contests outstanding. one in north dakota for a senate race there. hydecamp against burke. north dakota is a big state and may be hard to get some of those ballots in. then florida. doesn't matter anymore to the outcome of the election but it's still fascinating to me. i don't think many republicans saw this coming, the defeat in florida, even though the polls said it was possible. i think it was a surprise. and if nothing else, florida speaks to the democratic demographic challenges facing the republican party in the years to come. >> when you talk about the final senate race, why is it outstanding. do you think it still will have

an impact if it helps democrats a little more or sets them back a little more. what's the impact even though we know democrats still have control of the senate. >> you know this very well that every single senator and every single seat they have counts big time when you look at counting votes. so i think the answer is yes to that. and the other interesting fact is that north dakota, this is an open democratic seat. they -- the republicans thought this was -- we talked about this earlier. this was a no-brainer they'd be able to take this. they ran a strong republican candidate and democrats ran a very strong democratic candidate. somebody who fit the state. a moderate democrat. one thing i'll add to that is while democrats are going to hold a line in the sand saying no tax increases, a lot of the newly elected democrats are moderates who also may not want tax increases. >> we talked about the future of the republican party, what it means for the party in general. it's interesting to think about spf specifics. you know there are politicians right now who have been on the phone with their advisers

already talking about how they position themselves. what to do now. chris christie, bobby jindal, paul ryan. marco rubio. >> marco rubio 2016. the question of paul ryan and where does paul ryan go from here after being on this national/international stage what his role will be within the party going forward, coming back to the house. that's unclear. >> he was already a big name in the republican party. there's no question he will continue to be because he is still the house budget chairman. but the question is whether or not this was -- there were some who say was this a no lose proposition. even if he didn't win the vice president he'd still be a face in the republican party. >> what does john boehner do with paul ryan? >> they become teammates. our special coverage continues with wolf blitzer and